Mission Statement, Vision, & Core Values (2024) of CTO Realty Growth, Inc. (CTO)

An Overview of CTO Realty Growth, Inc. (CTO)

General Summary of CTO Realty Growth, Inc. (CTO)

CTO Realty Growth, Inc. (CTO) is a publicly traded, self-managed equity Real Estate Investment Trust (REIT) that primarily focuses on the ownership, management, and repositioning of high-quality retail and mixed-use properties located in rapidly growing business-friendly markets. As of September 30, 2024, CTO owns and manages 22 commercial real estate properties across seven states in the U.S., encompassing approximately 4.6 million square feet of gross leasable space.

Historically, CTO has pursued a strategy of investing primarily through fee simple ownership of properties, alongside commercial loans and preferred equity investments. The portfolio includes a diverse range of income properties, commercial loans, and management services, which contribute to its overall revenue stream.

As of 2024, the company's current sales are driven by its income properties, generating annualized lease revenues of approximately $85.8 million from multi-tenant properties and $5.6 million from single-tenant properties, reflecting a weighted average remaining lease term of 5.0 years and 5.5 years, respectively.

Company's Financial Performance in the Latest Financial Reports

CTO's financial performance for the nine months ended September 30, 2024, demonstrated significant growth, with total revenue reaching $88.8 million, an increase of $9.5 million or 12.0% compared to $79.2 million for the same period in 2023. This growth is primarily attributed to:

• Income properties revenue of $79.0 million, up from $70.4 million (12.3% increase).
• Management services revenue of $3.4 million, slightly up from $3.3 million (2.0% increase).
• Interest income from commercial loans and investments totaling $4.4 million, significantly higher than $3.0 million (48.6% increase).
• Real estate operations revenue of $2.0 million, down from $2.6 million (23.9% decrease).

For the three months ended September 30, 2024, total revenue increased to $31.8 million from $28.5 million, marking an increase of $3.3 million or 11.7%. Notably, income properties revenue for this quarter reached $28.5 million, up from $25.2 million, and operating income from these properties increased to $20.7 million from $18.1 million, reflecting the positive impact of recent acquisitions.

CTO also reported net income attributable to the company of $13.3 million for the nine months ended September 30, 2024, a notable recovery from a net loss of $1.5 million for the same period in 2023. Total assets were valued at $1.176 billion as of September 30, 2024, with total liabilities at $580.3 million and stockholders' equity at $595.8 million.

Introduction to Company as a Leader in the Industry

CTO Realty Growth, Inc. stands out as a leader in the retail and mixed-use property sector, leveraging a robust portfolio and a strategic approach to property management and acquisitions. The company has positioned itself effectively in markets known for their favorable business conditions and demographic growth, which has resulted in a solid revenue base and positive financial trajectory.

CTO's commitment to enhancing shareholder value through strategic acquisitions and operational efficiencies has made it a noteworthy player in the real estate investment trust industry. The company’s proactive management style and focus on high-quality assets have contributed to its recognition as a leader, making it an attractive option for investors looking to understand successful investment strategies in the real estate sector.

Mission Statement of CTO Realty Growth, Inc. (CTO)

Company's Mission Statement Overview

CTO Realty Growth, Inc. (CTO) articulates its mission statement as a guiding principle that shapes its operational strategies and long-term objectives. The mission statement emphasizes the company’s commitment to creating value through strategic growth and the management of high-quality real estate assets. This commitment is reflected in CTO's focus on enhancing investor returns while maintaining a strong operational foundation.

Core Component 1: Value Creation

The first core component of CTO's mission statement is "Value Creation." This reflects the company's dedication to maximizing returns for its shareholders through prudent investment strategies and asset management. For instance, during the nine months ended September 30, 2024, CTO reported total revenue of $88.8 million, representing a 12.0% increase from $79.2 million in the same period in 2023 . This growth is attributed to enhanced income from recent property acquisitions, demonstrating the effectiveness of their value creation strategy.

Core Component 2: Strategic Growth

The second core component is "Strategic Growth." CTO Realty Growth actively pursues growth opportunities through the acquisition of income-producing properties and commercial loans. In 2024, CTO acquired properties for an aggregate purchase price of $210.0 million, illustrating its aggressive growth strategy. The company’s investment strategy is designed to capitalize on market trends and enhance its portfolio's value.

Core Component 3: High-Quality Asset Management

The final core component emphasizes "High-Quality Asset Management." CTO Realty Growth focuses on maintaining and enhancing the quality of its real estate assets to ensure sustainable income generation. As of September 30, 2024, the company’s portfolio included 16 multi-tenant properties with annualized revenues of $85.8 million and a weighted average remaining lease term of 5.0 years . This focus on quality management helps CTO mitigate risks and achieve consistent performance.

Vision Statement of CTO Realty Growth, Inc. (CTO)

Vision Statement Components of CTO Realty Growth, Inc. (CTO)

CTO Realty Growth, Inc. (CTO) aims to be a leader in the ownership and management of high-quality retail and mixed-use properties, focusing on markets with strong growth potential. The vision statement reflects the company's commitment to creating value for shareholders and enhancing the communities in which they operate. This chapter explores the key components of CTO's vision statement for 2024.

Market Leadership

CTO Realty Growth, Inc. envisions itself as a market leader in real estate investment, specifically targeting high-quality retail and mixed-use properties. As of September 30, 2024, CTO owns and manages 22 commercial properties across seven states, encompassing a total of approximately 4.6 million square feet of gross leasable space.

Investment Strategy

CTO's investment strategy is centered on acquiring properties in business-friendly environments that exhibit favorable tax policies and robust job growth. The company has committed to investing between $300 million and $350 million in income-producing properties for 2024. During the nine months ended September 30, 2024, CTO acquired properties for a total purchase price of $210 million.

Community Impact

CTO is dedicated to enhancing the communities in which it operates. The company focuses on properties that not only provide financial returns but also contribute positively to local economies. For instance, the recent acquisitions have been strategically selected to meet the increasing retail demand in growing markets.

Financial Performance

As of September 30, 2024, CTO reported total revenue of $88.8 million, a significant increase of 12% compared to the same period in 2023. The company's net income attributable to shareholders was $13.3 million for the nine months ended September 30, 2024, marking a substantial recovery from a net loss of $1.5 million in the same period the previous year. This financial performance underscores CTO's strategic focus on growth and profitability.

Value Creation

CTO Realty Growth, Inc. prioritizes value creation for its shareholders through disciplined investment and operational excellence. The company has increased its cash flows from operating activities to $45.8 million for the nine months ended September 30, 2024, up from $39.9 million in the prior year. This growth is indicative of the company's effective management of its income properties and investments.

Commitment to Sustainability

CTO is committed to sustainability in its operations, ensuring that its properties not only meet the needs of tenants and customers but also adhere to environmental standards. This commitment is reflected in the company's strategic initiatives aimed at energy efficiency and responsible development practices.

Conclusion

CTO Realty Growth, Inc.'s vision statement for 2024 encapsulates its goals of market leadership, strategic investment, community impact, financial performance, value creation, and sustainability. These elements collectively drive the company towards achieving its long-term objectives and fulfilling its commitments to stakeholders.

Core Values of CTO Realty Growth, Inc. (CTO)

Integrity

Integrity is a core value at CTO Realty Growth, Inc. (CTO), emphasizing ethical conduct and honesty in all business dealings. The importance of integrity is reflected in the company's commitment to transparency and accountability.

CTO demonstrates its integrity through rigorous compliance with regulatory requirements and ethical standards. For instance, during the nine months ended September 30, 2024, CTO reported a net income attributable to the company of $13.3 million, showcasing its commitment to maintaining accurate and transparent financial reporting.

Excellence

Excellence drives CTO to pursue the highest standards in property management and investment strategies. This core value is crucial for ensuring quality service and optimal performance across its real estate portfolio.

In 2024, CTO's total revenue reached $88.8 million, up from $79.2 million in the same period in 2023, indicating a strong commitment to operational excellence and performance improvement. The company also achieved a significant increase in cash flows from operating activities, totaling $45.8 million for the nine months ended September 30, 2024, compared to $39.9 million in 2023.

Innovation

Innovation is a cornerstone of CTO's strategy, driving the company to explore new opportunities and adopt advanced technologies in real estate management.

CTO has invested approximately $277.2 million in capital expenditures during the nine months ended September 30, 2024, reflecting its dedication to innovative property development and enhancement. The company has also expanded its portfolio by acquiring four multi-tenant income properties at a total cost of $210 million.

Collaboration

Collaboration fosters teamwork among employees and partners, ensuring effective communication and synergy in achieving common goals.

CTO's partnership with Alpine Income Property Trust, Inc. (PINE) exemplifies this value. As of September 30, 2024, CTO held an investment of $43 million in PINE, representing 15.3% of PINE's outstanding equity. This collaboration not only enhances operational efficiency but also broadens the company's market reach and investment potential.

Accountability

Accountability ensures that all employees take responsibility for their actions and decisions, which is vital for maintaining trust with stakeholders.

CTO's board regularly reviews its capital allocation strategies, demonstrating accountability in financial management. The company has committed to funding future acquisitions ranging from $300 million to $350 million, with plans to utilize various financing sources including cash on hand and its credit facility.

Article updated on 8 Nov 2024

Resources:

• CTO Realty Growth, Inc. (CTO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CTO Realty Growth, Inc. (CTO)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View CTO Realty Growth, Inc. (CTO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.